Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization

Richard N. Langlois () and Nicolai Foss ()

No 97-2, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: We argue that since Coase’s seminal 1937 paper on “The Nature of the Firm,” there has been an odd and unjustified separation between price theory and the economics of organization. For example, matters of production has been the domain of the former exclusively. However, a new approach to economic organization, here called “the capabilities approach,” that places production center-stage in the explanation of economic organization, is now emerging. We discuss the sources of this approach and its relation to the mainstream economics of organization.

Keywords: Capability; Theory of the Firm; Price Theory (search for similar items in EconPapers)
JEL-codes: D23 D40 D83 (search for similar items in EconPapers)
Date: 1997
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Related works:
Working Paper: Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization (1996)
Journal Article: Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization (1999)
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Persistent link: http://EconPapers.repec.org/RePEc:aal:abbswp:97-2

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